Across the U.S., summertime is becoming synonymous with heat waves — and wildfires.
The wildfire tally is growing as these blazes break records and, increasingly, homeowners’ finances. Reconstruction costs are becoming so burdensome, to both homeowners and insurers, that some people aren’t able to afford to come back to their homes at all.
Even in some of the wealthiest ZIP codes in the U.S., Cotality data found that wildfires can be so financially destructive that people start putting off mortgage payments.
Mortgage delinquencies spiked in the wake of the 2025 Los Angeles wildfires
Data source: Cotality, 2026
A slow burn
- 30-day delinquencies: In the month immediately following the fires, mortgage delinquencies jumped nearly 6%.
- 60-day delinquencies: Two months after the fires, delinquencies rose to 4% of all mortgages in the area.
- 90-day delinquencies: Three months after the fire, the number of mortgages that are seriously delinquent, or over 90 days past due, became apparent. That figure has held steady, and even a year later, seriously delinquent mortgages hover at a rate that is over twice as high as it was prior to the event.
Foreclosure rates have remained stable, suggesting that borrowers are able to tap into temporary solutions for financial equilibrium.
“Mortgage delinquencies often rise immediately following a major event and then gradually improve as insurance proceeds, assistance programs, and other relief become available," said Molly Boesel, senior principal economist at Cotality. "What makes the Los Angeles fires notable is the persistence of serious delinquencies. While most homeowners appear to recover relatively quickly, the data shows that for some households, the financial consequences of a disaster can linger long after the physical damage has been repaired."
Lingering costs
Wildfires are acute events that leave physical damage and chronic financial stress in their wake. And Los Angeles has the most concentrated wildfire risk in the U.S., according to Cotality data.
Nearly 250,000 homes have at least moderate wildfire risk, which due to the high cost of homes in the area translates to $209.2 billion in reconstruction cost value. In May 2026, the median home price on closed listings in the Los Angeles is $912,500.
Risk is quietly shifting the narrative of home ownership. Buyers, lenders, and insurers need property-level clarity before the total price can be judged with confidence and they can implement risk mitigation to build long-term resilience.
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